Introduction of Personnel Management

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant
part of management concerned with employees at work and with their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration and maintainance
of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human resource of
organization.”

Nature of Personnel Management

1. Personnel management includes the function of employment, development and compensation- These
functions are performed primarily by the personnel management in consultation with other departments.

2. Personnel management is an extension to general management. It is concerned with promoting and

stimulating competent work force to make their fullest contribution to the concern.

3. Personnel management exist to advice and assist the line managers in personnel matters. Therefore,
personnel department is a staff department of an organization.

4. Personnel management lays emphasize on action rather than making lengthy schedules, plans, work
methods. The problems and grievances of people at work can be solved more effectively through rationale
personnel policies.

5. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern.

6. It also motivates the employees through it’s effective incentive plans so that the employees provide fullest co-
operation.

7. Personnel management deals with human resources of a concern. In context to human resources, it manages
both individual as well as blue- collar workers.

Role of Personnel Manager

Personnel manager is the head of personnel department. He performs both managerial and operative functions of
management. His role can be summarized as :

1. Personnel manager provides assistance to top management- The top management are the people who
decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce
can be framed out effectively by the personnel manager.

2. He advices the line manager as a staff specialist- Personnel manager acts like a staff advisor and assists
the line managers in dealing with various personnel matters.

3. As a counsellor,- As a counsellor, personnel manager attends problems and grievances of employees and
guides them. He tries to solve them in best of his capacity.

4. Personnel manager acts as a mediator- He is a linking pin between management and workers.

5. He acts as a spokesman- Since he is in direct contact with the employees, he is required to act as
representative of organization in committees appointed by government. He represents company in training
programmes.

Functions of Personnel Management

Following are the four functions of Personnel Management:

1. Manpower Planning

2. Recruitment

3. Selection

4. Training and Development

Elements of Personnel Management

Following are the elements of Personnel Management:

1. Organization- Organization is said to be the framework of many activities takingplace in view of goals

available in a concern. An organization can be called as a physical framework of various interrelated activities.
Right from manpower planning to employees’ maintenance, all activities take place within this framework. The
nature of the organization is dependent upon its goal. The business concern goal being profit- making. Clubs,
hospitals, schools, etc. their goal being service. The objective of consultancy being providing sound advice.
Therefore, it is organizational structure on which the achievement of goals of an enterprise depends upon. In
personnel management, a manager has therefore to understand the importance of organizational structure.

2. Job- The second element, i.e., jobs tell us the activities to be performed in the organization. It is said that the
goals of an enterprise can be achieved only through the functional department in it. Therefore, seeing the size
of organization today, the nature of activities are changing. In addition to the three primary departments,
personnel and research department are new additions. Various types of jobs available are :

a. Physical jobs

b. Creative jobs

c. Proficiency jobs

d. Intellectual jobs

e. Consultancy jobs

f. Technical jobs

3. People- The last and foremost element in personnel management is people. In a organizational structure,
where the main aim is to achieve the goals, the presence of manpower becomes vital. Therefore, in order to
achieve departmental goals, different kinds of people with different skills are appointed. People form the most
important element because :

a. The organizational structure is meaningless without it.

b. It helps to achieve the goals of the enterprise.

c. It helps in manning the functional areas.

d. It helps in achieving the functional departmental goals.

e. They make a concern operational.

f. They give life to a physical organization.

The different types of people which are generally required in a concern are :

1. Physically fit people

2. Creative people

3. Intellectuals

4. Technical people

5. Proficient and skilled people

In personnel management, a personnel manager has to understand the relationship of the three elements and their
importance in organization. He has to understand basically three relationships:-

i. Relationship between organization and job

ii. Relationship between job and people

iii. Relationship between people and organization.

Relationship between organization and job helps making a job effective and significant. Relationship between job and
people makes the job itself important. Relationship between people and organization gives due importance to
organizational structure and the role of people in it.
TYPES OF MANAGEMENT

1. Strategic Management - is the ongoing planning, monitoring, analysis and assessment of all that is necessary
for an organization to meet its goals and objectives. Changes in the business environment require
organizations to constantly assess their strategies for success.

2. Sales Management - - is the process of developing a sales force, coordinating sales operations, and

implementing sales techniques that allow a business to consistently hit, and even surpass, its sales targets. If
your business brings in any revenue at all, a sales management strategy is an absolute must.

3. Marketing Management - - is “planning, organizing, controlling and implementing of marketing programmes,

policies, strategies and tactics designed to create and satisfy the demand for the firms’ product offerings or
services as a means of generating an acceptable profit.”

4. Public Relations - Public relations can and should make an important contribution in helping to form an
organization’s ideas about what it is, what it should do and what its publics want and expect from it.

5. Operation Management - - is the administration of business practices to create the highest level of efficiency
possible within an organization. It is concerned with converting materials and labor into goods and services as
efficiently as possible to maximize the profit of an organization.

6. Supply Chain Management - - Supply chain management is the management of the flow of goods and
services and includes all processes that transform raw materials into final products. It involves the active
streamlining of a business's supply-side activities to maximize customer value and gain a competitive
advantage in the marketplace.

7. Procurement Management - is one such form of management, where goods and services are acquired from a
different organization or firm.

- is known to help an organization to save much of the money spent when purchasing goods and services from
outside. It also has several other advantages.

8. Financial & Accounting Management - refers to the strategic planning, organising, directing, and controlling
of financial undertakings in an organisation or an institute. It also includes applying management principles
to the financial assets of an organisation, while also playing an important part in fiscal management.